Dynamic Connectedness between Renewable and Nonrenewable Energy Consumptions, Economic Growth and Carbon Dioxide Emissions in Vietnam: Extension of the TVP-VAR Joint Connected Approach

Authors

  • Le Thanh Ha Faculty of Economics; National Economics University, Hanoi, Vietnam.
  • Nguyen Thi Thanh Huyen Faculty of Environmental-Climate Change and Urban Studies; National Economics University, Hanoi, Vietnam

DOI:

https://doi.org/10.32479/ijeep.12956

Abstract

We employ a time-varying parameter vector autoregression (TVP-VAR) combined with an extended joint connectedness approach to study interlinkages between renewable and nonrenewable energy consumption, economic growth, and CO2 emission by characterizing connectedness of four markets starting from 1985 to 2019. Our results demonstrate that the financial crisis appears to have influences on the system-wide dynamic connectedness, which reaches a peak during 1989. The total directional connectedness suggests that nonrenewable and renewable sources of energy consumption tend to be net recipients of spillover shocks. Throughout the studied period, growth in the economy and CO2 emissions seem to be influential net shock transmitters. Pairwise connectedness reveals that nonrenewable consumption primarily receives spillover effects of economic and environmental shocks. Since the crisis, CO2 emission has been a net receiver of shocks from other variables.

Keywords:

Nonrenewable and renewable energy consumption, GDP, CO2 emission, dynamic connectedness, joint connectedness

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Published

2022-05-18

How to Cite

Ha, L. T., & Huyen, N. T. T. (2022). Dynamic Connectedness between Renewable and Nonrenewable Energy Consumptions, Economic Growth and Carbon Dioxide Emissions in Vietnam: Extension of the TVP-VAR Joint Connected Approach . International Journal of Energy Economics and Policy, 12(3), 361–372. https://doi.org/10.32479/ijeep.12956

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Articles